Regulatory Alerts2026-02-20
Added
Circular on Insurable Interest and Over-Insurance for Funeral Insurance Policies
Registered long-term insurers and intermediaries must verify insurable interest at policy inception before issuing, adding a life assured, or materially amending funeral policies. Insurers must implement mechanisms to prevent over-insurance, including duplicate-policy detection systems, documented underwriting rules, clear disclosure of limits, and periodic audits of active policies. Insurers are prohibited from soliciting or maintaining funeral contracts where applicable limits have been reached, and they remain ultimately responsible for compliance even when intermediaries are involved. The Registrar requires confirmation from the board of directors that these measures have been revised and implemented by 29 May 2026.